Foreclosure process changes dictated by Feds to 14 big banks

By Jack, on April 17th, 2011

Mortgage modifications may become easier soon if these 14 banks, (Bank of America, Wells Fargo, JP Morgan Chase, Citigroup, Ally, HSBC, MetLife, PNC, Suntrust, US Bancorp, Aurora, Everbank, One West and Sovereign) do what the Obama administration is telling them to do. The key provisions affecting you if you have a mortgage with any of these banks are these:

No foreclosure on anyone who is in the process of receiving a mortgage modification.

Banks must provide a “single point of contact” (human) for any customer who is involved either with mortgage modification or foreclosure.

Banks must provide enough staff to handle the flood of foreclosures.

For those who have been foreclosed on by any of these banks another provision applies:

Each bank must hire an independent consultant to look at all foreclosures from 2009 and 2010 to see if any were improperly done and, if so, to set up a “process” to provide reasonable compensation to anyone who was harmed.

Anyone who has tried to work with any of these banks knows how frustrating it is. They constantly lose documents. You cannot get to anyone who knows what is going on. The right hand does not know what the left hand is doing. It can drive you nuts. The first three provisions will change all that IF the banks actually follow them (we shall watch). If you have already been foreclosed out of your home, the fourth provision may, at some time in the future, get you some compensation.